The year 2008 will go down in history as the worst year in terms of the stock market performance. The Sensex has lost 54.05% from the close of the year 2007.
Out of the 22 years that the Sensex has been in existence, the worst annual performance before this has been a loss of 20.79% in the year 1995, it was neither 1993 nor 2001.
Infact 98% of the stocks have lost in value. More than 83% of the stocks have lost 50% or more value.
And portfolios weren’t the only things suffering. As business suffered losses, corporate governance took the beating. Even companies that were once considered examples of good governance succumbed to the lure of protecting their own interests than that of the shareholders. Satyam can be considered typical example of such companies.
From the History, we found, the fall is also seen for the next year of crises. The market fell in 1986,1987, 1995, 1996, 1998, 2000 and 2001. Its evident that barring 1998, every time the Sensex fell, it do so for two consecutive years. So by analysis, it shows that Year 2009 would not be very good year for Indian Stock market, but definitely a good amount of recovery would be seen.
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